apac procurement business model - erpdb · 2016. 1. 18. · in consignment processing, the vendor...

APAC Procurement Business Model

Consignment Procedure Training Document

Local Group Companies

Submit Date, 17-Nov-04 <Confidential>

<Other Clause> Copyright @ 2003 Holcim Services (Asia) Ltd.

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Document Control Document Name Consignment Procedure Training Document Author Ha Tran File Name & Path Created 17-Nov-04 Last Edited Printed on

Version Revision Date Revision Description Author Sign-off V1.0 17-Nov-04 Ha Tran

Document Approval

Role Name Signature Date

Distribution List

Role Name Signature Date

Consignment Procedure Training Document 2/35

This document is for Super Users Training on 17 – 21 January, 04

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Table of Contents CONSIGNMENT: USE ......................................................................................................................... 4

FEATURES .......................................................................................................................................... 4

PRICING FOR CONSIGNMENT SOCKS ............................................................................................ 4 USE.................................................................................................................................................... 4

PROCUREMENT OF CONSIGNMENT MATERIAL............................................................................ 5 USE.................................................................................................................................................... 5 ACTIVITIES .......................................................................................................................................... 5

Creating Purchase Requisitions for Consignment Material ...........................................................................5 Creating Purchase Orders / Outline Agreements for Consignment Materials ...............................................5

STOCKS MOVEMENTS FOR CONSIGNMENT MATERIAL.............................................................. 5 USE.................................................................................................................................................... 5 POSTING GOODS RECEIPT FOR CONSIGNMENT MATERIAL..................................................................... 5

Goods Receipt With Purchase Order ............................................................................................................6 Goods Receipt Without Purchase Order .......................................................................................................6 Updating Consignment Stock........................................................................................................................6

DISPLAY CONSIGNMENT STOCK ........................................................................................................... 6 Use................................................................................................................................................................6 Activities........................................................................................................................................................7

TRANSFERRING CONSIGNMENT STOCKS............................................................................................... 7 TRANSFERRING CONSIGNMENT MATERIAL TO ANOTHER STOCK TYPE.................................................... 7 TRANSFERRING CONSIGNMENT MATERIAL INTO OWN STOCK ................................................................ 8

Prerequisites .................................................................................................................................................8 Result............................................................................................................................................................8

SETTING CONSIGNMENT LIABILITIES ..................................................................................................... 8 Use................................................................................................................................................................8

BUSINESS PROCESS PROCEDURE................................................................................................. 9 1. CREATION OF PURCHASING INFO RECORD FOR CONSIGNMENT.......................................................... 9 2. MAINTENANCE OF GOODS RECEIPT FOR CONSIGNMENT STOCK ....................................................... 18 3. MAINTENANCE OF GOODS ISSUE FOR DIRECT CONSUMPTION........................................................... 24 4. PERFORM CONSIGNMENT LIABILITIES SETTLEMENT......................................................................... 31



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Consignment: Use

In consignment processing, the vendor provides materials and stores them on the enterprise’s premises. The vendor remains the legal owner of the material until materials are withdrawn from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, it can also be arranged with the vendor that the ownership of the remaining consignment material is taken over after a certain period of time

Features

• The consignment stock is managed under the same number as the enterprise’s own stock. Consignment stock can, therefore, be transferred to the available stock.

• It is possible to define consignment prices in foreign currency. The currency in which the order is placed with the vendor applies for consignment withdrawals.

• It is possible to determine period-specific consignment prices. • The consignment price can be specified in any unit of measure. The conversion factor

is stored in the info record. • Using consignment info records, the enterprise can make use of other condition

functions used in Purchasing, such as discounts and price quantity scales. • Consignment stocks of the same material from different vendors can be managed

independently from one another and at the price of the individual vendors. • Consignment stocks are not valuated. When the material is withdrawn, it is valuated at

the price of the respective vendor. • A consignment material can be allocated to one of three stock types:

o Unrestricted-use stock o Quality inspection stock o Blocked stock

It can be possible to make transfer postings between these three stock types. Withdrawals can only be posted from unrestricted stock, however.

Pricing for Consignment Socks

Use Before a material can be ordered from a vendor or a goods receipt is posted to consignment stock, the consignment price must be maintained for the vendor in an info record. The price is required for material valuation and accounting purposes. If consignment material is ordered from several vendors, the system maintains the consignment stock separately for each vendor, since the individual quantities of the material can have different prices with each vendor.



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Procurement of Consignment Material

Use Consignment material can be procured via purchase requisitions, purchase orders and outline agreements for consignment material.

Activities

Creating Purchase Requisitions for Consignment Material The purchase requisitions are maintained for consignment materials in exactly the same way as for other materials. The order category (such as NB) that the system proposes is then accepted as a default and the item category K (for consignment) is entered accordingly.

Creating Purchase Orders / Outline Agreements for Consignment Materials The procedure for creating consignment orders is the same as for standard purchase orders or outline agreements. However, the following should be noted:

• Enter the item category K for the consignment item. To ensure that the goods receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item.

• Do not enter a net price.

Stocks Movements for Consignment Material

Use This section describes the different movement types for consignment material.

Posting Goods Receipt for Consignment Material Goods receipts to your consignment stores can either:

• refer to a purchase order or • be made by the vendor directly without a purchase order



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The posting procedure differs slightly. A goods receipt to consignment stock is possible for three stock types:

• Unrestricted-use stock • Quality inspection stock • Blocked stock

Goods Receipt With Purchase Order If a purchase order exists for the consignment material delivered, enter a goods receipt as follows:

From the Inventory Management menu, choose Goods movement → Goods receipt → For purchase order → PO number known. The initial screen is displayed.

1.

2.

3.

4.

5.

Enter the number of the purchase order to which the goods receipt refers. It can also be possible to enter the plant and storage location.

Select the movement type with Movement type → PO to warehouse. Please ENTER to display the item overview.

Select the items to be processed and check the quantities delivered. If required, enter a stock type in column S. Copy (adopt) the selected items.

Post the goods receipt.

Goods Receipt Without Purchase Order If the vendor's goods receipt is not based on a purchase order, proceed as follows:

1. Choose Goods movement → Goods receipt → Other from the Inventory Management menu.

2. On the initial screen choose Movement type → Receipt → W/o purchase order → To

consignment unr. Enter the plant and storage location. Press ENTER to display the collective entry screen.

3. Enter the number of the vendor.

4. Enter the number and quantity of the consignment material.

5. Post the goods receipt.

Updating Consignment Stock After a goods receipt for consignment material has been posted, the consignment stock of the material increases. The consignment stock is available for MRP. However, the material's valuated stock does not increase since the consignment stock still belongs to the vendor.

Display Consignment Stock

Use A goods issue can only be posted from consignment stock to consumption if the material belongs to unrestricted-use stock. If the consignment material is in quality inspection or blocked stock, it is mandatory to first transfer it to the unrestricted-use stock.



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Activities Choose Goods movement → Goods issue. Enter the data as required, including movement type, account assignment object, and vendor. After the goods issue, the vendor is due the net value of the goods issue.

Transferring Consignment Stocks If, for example, a consignment material is required to be transferred within a plant from one storage location to another, proceed as follows:

1. From the Inventory Management menu, select Goods movement → Transfer posting. The initial screen is displayed.

2. Enter the plant and the issuing storage location. Choose Movement type → Transfer

posting → Vendor Consignment → SLoc unre. to unre. (Storage location unrestricted to unrestricted). It is also possible to transfer quality inspection stock or blocked stock.

3. Press ENTER. The collective entry screen appears.

4. Enter the following data:

o Receiving storage location o Vendor o Material o Quantity

5. Post the stock transfer.

The transferred quantity is now managed in the consignment stock of the receiving plant.

Transferring Consignment Material to Another Stock Type If the consignment material is posted to the quality inspection stock or blocked stock, it is mandatory to transfer it to the unrestricted-use stock before it can be withdrawn. To transfer a consignment material from one stock to another, proceed as follows:

1. From the Inventory Management menu, select Goods movement → Transfer posting. The initial screen appears.

2. Enter the plant and storage location. Choose Movement type → Transfer posting →

Consignment and then the stock type (for example, Ql to unrestricted).

3. Press ENTER. The collective entry screen appears.

4. Enter the following data: o Vendor o Material o Quantity Only enter a receiving storage location if the material should be stored in another storage location.

5. Post the stock transfer.

The consignment material is now managed with a different stock type.



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Transferring Consignment Material Into Own Stock

Prerequisites Supposing it is mutually agreed with the vendor that after six months the enterprise will take over ownership of the remaining consignment stock. To do this, carry out the following goods movement:

1. Choose Goods movement → Transfer posting. The initial screen appears. 2. Enter the plant and storage location. Choose Movement type → Transfer posting →

Consignment → Consignment to own. (Movement type 411 with special stock indicator K).

3. Select Continue. The collective entry screen appears.

4. Enter the vendor, material, and quantity. Only enter a receiving storage location if the

material should be stored in another storage location.

5. Post the document.

Result The transfer results in a liability towards the vendor.

Setting Consignment Liabilities

Use Removing material from consignment stores or transferring material to the enterprise’s own stock results in liabilities towards the vendor. These liabilities should be settled at regular intervals. Consignment materials are settled without the vendor issuing an invoice, as the vendor company is unable to track withdrawals directly. The vendor can only manage its consignment stock by taking deliveries and payments into account. The payment initiation shall be made for consignment withdrawals using the Logistics Invoice Verification application component.



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Business Process Procedure

1. Creation of Purchasing Info Record for Consignment

1.1. Access transaction by Via Menu Logistics Materials Management Purchasing Master Data

lnfo Record Create Via Transaction Code ME11

Key T-Code: ME11

Fig-01



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1.2. On “Create Info Record: Initial Screen” screen, fill in the data as below:

Fig-02

Field Name Description R/O/C/D User Action and Values Vendor Alphanumeric key uniquely

identifying a vendor R Enter the vendor number

Material Alphanumeric key uniquely identifying the material

R Enter the material number

Purchasing Org. Denotes the purchasing organization

R Enter the purchasing organization

Plant Specifies the key for a production facility or branch office within the company

R Enter the plant number

Info Record Specifies the number that uniquely identifies a purchasing info record

O Enter the info record number

Info Category Indicator R Flag the indicator: “Standard”: If this indicator is set, the data from the info record is only adopted in standard POs. “Subcontracting”: If this indicator is set, the data from the info record is only adopted in subcontract orders. “Pipeline”: Specifies that the info record is used specifically for pipeline withdrawals. “Consignment”: If this indicator is



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Field Name Description R/O/C/D User Action and Values set, the data of the info record is only adopted for the purpose of procuring consignment materials. It is mandatory that the ‘Consignment’ radio-button will be flagged to differentiate the consignment info record with standard info record document.

Press “ENTER” to access to the ‘General Data’ view of the Info Record

Legend: R = Required, O = Optional, C = Conditional, D = Display

1.3. On “Create Info Record: General Data” screen, fill in the data as below:

Fig-03



Field Name Description R/O/C/D User Action and Values Reminder 1, 2, 3 Number of days

presenting the time interval at which reminders or urging letters/messages are to be issued to the vendor

R Enter the number A negative number of days means that a reminder is to be issued to the vendor n days prior to a certain date. A positive number of days means that a letter or message urging delivery of submission of a quotation etc. is to be issued n days after the due date.

Order Unit Specifies the unit of measure in which the

R Enter the order unit

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Field Name Description R/O/C/D User Action and Values material is ordered

Press “ENTER”


1.4. On “Create Info Record: Purch. Organization Data 1” screen, fill in the data as below:

Fig-04

Field Name Description R/O/C/D User Action and Values Tax code A tax category which must

be taken into consideration when making a tax return to the tax authorities

R Enter the tax code

Net price Price arrived at after taking all discounts and surcharges into account

R Enter the net price

Press “ENTER”




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1.5. On “Create Info Record: Purch. Organization Data 1” screen, maintain information as specified in the table below:

Fig-05

Field Name Description R/O/C/D User Action and Values Continue to press ‘ENTER’ to

branch into the ‘Conditions’ tab view where pricing conditions as well as validity period will be defined




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1.6. On “Create Gross Price Condition (PB00) : Condition Supplements” screen, maintain information as specified in the table below:

Fig-06

Field Name Description R/O/C/D User Action and Values Enter the specific pricing

conditions for the consignment purchasing info record in

.

Then click on icon to return to main view of the info record




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1.7. On “Create Info Record: Purch. Organization Data 1” screen, maintain information as specified in the table below:

Fig-07

Field Name Description R/O/C/D User Action and Values Should text information is required

to be maintained in either ‘Info Record Item Note/Text’ or “Purchase Order Text” field, then the “Texts’ view will be selected




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1.8. On “Create Info Record: Text Overview” screen, fill in the data as below:

Fig-08

Field Name Description R/O/C/D User Action and Values

Click on icon to save this Consignment Purchasing Info Record.




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Fig-09



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2. Maintenance of Goods Receipt for consignment stock

2.1. Access transaction by Via Menu Logistics Materials Management Inventory Management

Goods Movement Goods Movement (MIGO) Via Transaction Code MIGO

Key T-Code: MIGO

Fig-10



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2.2. On “Goods receipt Others” screen, fill in the data as below:

Fig-11

Field Name Description R/O/C/D User Action and Values Since it is decided that the stock

replenishment for consigned materials will be done without reference to any purchase order, the option shall be mandatory selected in the “Reference Document” field.

Material slip Specifies the identifier on an external document

R Enter the material slip

Branch to tab page of the GR Item Details where you can maintain the material number of your consigned stock in the ‘Material’ field

Material A description of the material

R Enter the material number or description

Branch to tab




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Fig-12

Field Name Description R/O/C/D User Action and Values Qty in unit of entry

Specifies the quantity to be moved in the unit of entry

R Enter the quantity in unit of entry

Branch to tab




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Fig-13

Field Name Description R/O/C/D User Action and Values Special stock indicator

Specifies the special stock type

R Enter the special stock type ‘K’ (used purely to indicate that the receipt is for consignment stock replenishment)

Plant Plant name R Enter the plant name

Storage location Description of storage location

R Enter the description of storage location

Goods recipient Specifies the recipient for whom the material or the service is destined

O Enter the goods recipient

Text Contain an explanatory text on the line item

O Enter the text

Press ‘ENTER’ then two additional tab pages appear – Partner and Account Assignment




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Fig-14


Branch to tab Vendor Specifies the name of the

vendor R Enter the vendor name to indicate

that this consignment stock is for that particular vendor

Click on icon to validate the correctness of data being entered

Click on icon or icon to post the GR document




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Fig-15



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3. Maintenance of Goods Issue for direct consumption

3.1. Access transaction by Via Menu Logistics Materials Management Inventory Management

Goods Movement Goods Movement (MIGO) Via Transaction Code MIGO

Key T-Code: MIGO

Fig-16



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Fig-17

Field Name Description R/O/C/D User Action and Values Supposing the consumption is for

direct cost center, both ‘Transaction/Event’ and ‘Reference Document’ fields are chosen as

and

accordingly

Material slip Specifies the identifier on an external document

R Enter the material slip

Material A description of the material

R Enter the material number or description

Branch to tab




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3.3. On “Goods issue Others” screen, fill in the data as below:

Fig-18

Field Name Description R/O/C/D User Action and Values Qty in unit of entry

Specifies the quantity to be moved in the unit of entry

R Enter the quantity in unit of entry

Branch to tab




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Fig-19

Field Name Description R/O/C/D User Action and Values Special stock indicator

Specifies the special stock type

R Enter the special stock type ‘K’ (to indicate that this stock issuance is from consignment stock instead of unrestricted use stock of the company)

Plant Plant name R Enter the plant name

Storage location Description of storage location

R Enter the description of storage location

Goods recipient Specifies the recipient for whom the material or the service is destined

O Enter the goods recipient

Reason for movement

Specifies a key you can use to call up a standard text stipulating the reason for a goods movement

O Enter the reason for movement

Text Contain an explanatory text on the line item

O Enter the text

Press ‘ENTER’ then two additional tab pages appear – Partner and Account Assignment




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Fig-20


Branch to tab Vendor Specifies the name of the

vendor R Enter the vendor name which

represents the consignor of which the consignment stock is to be withdrawn

Branch to tab




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Fig-21

Fig-22



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Field Name Description R/O/C/D User Action and Values G/L account The G/L account in a chart

of accounts O Enter the G/L account

Business area Key identifying a business area

O Enter the business area

Cost Center Key uniquely identifying a cost center

R Enter the cost center

Click on icon to verify the accuracy of all entries

Once the validation proves successful (with green light), this Goods Issue Document can be

posted by clicking on icon

or icon Legend: R = Required, O = Optional, C = Conditional, D = Display

Fig-23



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4. Perform Consignment Liabilities Settlement

4.1. Access transaction by Via Menu Logistics Materials Management Logistics Invoice Verification

Automatic Settlement Consignment and Pipeline Settlement Via Transaction Code MRKO

Key T-Code: MRKO

Fig-24



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4.2. On “Consignment and Pipeline Settlement” screen, fill in the data as below:

Fig-25

Field Name Description R/O/C/D User Action and Values Company code The organization unit by

which consignment settlement is to be made

R Enter the company code

Vendor The third-party supplier/consignor to which payment of consignment settlement is to be made

O Enter the vendor

Plant The organization unit belonging to company code for which the consignment settlement is to be executed

O Enter the plant

Material The alphanumeric uniquely representing the reference number of the consignment stock being settled

O Enter the material number

Document date The date on which the stock issuance (goods issue) is created

O Enter the document date

Posting date The date on which the goods issue document is entered into the financial accounting and/or controlling

O Enter the posting date



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Field Name Description R/O/C/D User Action and Values Material document

The reference number of the goods issue of consignment stock

O Enter the material document

The indicator indicating that the settlement is to be made for consignment stock being withdrawn

O Select the indicator

The indicator indicating that the system lists the pipeline withdrawals


This selection option, if being chosen, will only enable the display of which goods issue documents are to be settled for consignment stock

O Select the button

This option is purposely selected when the consignment liabilities is required to be settled based upon the total withdrawn quantities. In most cases, what warehouse/purchasing is doing is to use ‘Display’ mode to view the possible posting. The ‘Settlement’ icon will therefore, be particularly used by A/P when the validation is as successful as expected

O Select the button

Once being flagged, this indicator help determine the list of all goods issues for which settlement to the consignment vendor has not been made


The selection of this alternative option results in the production of only goods issues which were settled beforehand


Document number

The key that the system uses to access to the accounting document

O Enter the document number

Variant The layout determines the list format

O Enter the variant

Click on icon Legend: R = Required, O = Optional, C = Conditional, D = Display



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4.3. On “Consignment and Pipeline Settlement” screen, after making a proper validation of the entries, the ‘Settled’ running mode will be chosen:

Fig-26



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4.4. On “Consignment and Pipeline Settlement” screen, the document number represents the actual accounting document being generated automatically after MRKO transaction run:

Fig-27

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